Online banking and cyber security
Contents
Role of trusting in building customer perception. 5
Factors affecting customer’s trust 6
Male and female understanding of security. 7
Level of awareness amongst customers concerning privacy standards used in banks. 11
Acknowledgment
While submitting this report, I would like to thank my supervisor “Ms. Hena Gull “for the help and guidance which she has given me to understand this topic. Without her support, it would not be possible to complete my project.
I would also like to thank the other faculty member’s for extending their supports and providing me with all the resources which were required to complete my research. Don't use plagiarised sources.Get your custom essay just from $11/page
Date:
16/11/2019
Abstract
This report is based on cybersecurity issues faced face by online banks. The report highlights that the current business environment is making it difficult for banks to operate as the risk related to cyber attacks is increasing rapidly due to innovation. This report states in the introductory chapter that the use of informational technology is becoming common these days, and especially the banking sector is using the internet more for providing online banking services. The use of online banking is becoming common in present years, and along with this, the banks are also facing issues related to trust. The report highlights the trust issues amongst customers in the discussion sector. In this section, the discussion is related to different components related to the security and privacy of customers. This chapter explains that for building the trust of customers upon online banking, the essential thing to which the consideration should be given is related to past experiences of customers regarding the use of online banks. The discussion chapter also explains that the perception of customers is also different regarding risks, and it is the responsibility of businesses to understand how each customer perceives the threat related to online banking. In this chapter, the results of the survey are also mentioned, which depicts that there is a difference between male and female perceptions regarding online banking. The conclusion chapter also explains the way through which online banking is changing the dynamics in the banking sector. This chapter explains that it is essential to understand that the perception of risk related to the online industry varies from person to person. This chapter discusses the findings related to the survey, and it was explained that what male and female customers think about online banking. It was revealed that males are more comfortable using online banking as compared to females, and they are also more frequently using it. Lastly, the survey which was conducted is attached along with the reference list which was used to collect data for research
Introduction
The banking sector cannot deny the role played by the IT sector in its development. Information technology is helping the banking sector to excel, and they are also taking all reasonable steps to maintain the industry is growing. Not only banks but other financial institutions are also seeking help from IT systems to improve the quality of their operations. This determines that for businesses, the only important thing is based on having maintained the quality of IT systems within an organization. The use of information technology is also shifting banking towards relationship banking amongst the people. This is described as maintaining proper and useful relations with consumers by offering excellent and effective services. The use of information technology is becoming common in banking, and it is not just involving making financial transactions; instead, it is also meant buying and selling commodities [1]. Cybersecurity is the major issue about which the banks are not only cautious but are also concerned with taking all reasonable steps to mitigate this risk. Because of risk related to cybersecurity, it is witnessed that customers are hesitant in using online banking. The factors such as trust are the only reason which is causing implication in the online banking systems
Discussion
Internet or online banking is a type of e-service which is provided by different banks and is based on adopting the practice by making a transaction from the internet. The primary factor which is contributing to the decision related to online banking is based on trust. Banks need to understand the way through which the trust of customers can be gained. This trust will not only help in developing the customer base but can also help banks in making their processes easy to manage [2].
Role of trusting in building customer perception
The studies have conducted in this regard in which it was identified that how businesses are building their online trust amongst customers and how this factor is helping them to grow. The role of faith is not only essential but is also essential to a contributing factor to bring change within the banking sector. The perspective of customers is regarding security related to financial transactions. Different factors are impacting the trust amongst the customers. The use of information technology is having an impact on the trust of customers, and it is becoming essential to mitigate this risk. If a customer trusts the bank in respect of the policies which they are using, then they are capable of using online banking [3]. If the customer will feel that banks are least bothered about their privacy than they would never prefer using their online banking system
Factors affecting customer’s trust
Forming online trust is not only essential but is also essential for bringing positive change in society. Privacy is the primary concern of people when they plan to use online banking systems. The privacy issue is the most critical and most important factor which causes trust deficiency amongst the people while they are planning to use online banking services. The growth in the online banking sector also comes up with different issues that are not only important to address but are also essential to maintain as they are impacting the online banking facilities of users. The banks are under constant pressure to increase the level of security. The banks have to incur costs in this regard, but it is highly essential to winning the trust of customers. The charges can be committed by establishing a department in which the security should be increased by limiting the unauthorized access to the online banking systems. This is going to decrease the level of motivation which exists amongst hackers and attackers in order to minimize the risk of security and privacy. There has been a reported increase in online banking crimes, and researchers believe that it is highly essential that the steps should be taken to reduce internet crimes in order to increase the level of customer satisfaction [4]
Customers understand that it is their right that their information should be kept private, but the online banking system has severe risks related to data leakage. There are instance in which the hackers have hacked the sites of banks and the personal data of customers were used which caused issues for the trust can be gained when the surety should be given to the customers in which it will be ensured that the focus of bank is over keeping the information of their customers safe and for this bank is incurring costs [5].
The use of online banking also increases the security concerns of people, and it impacts the level of trust amongst people. Maintaining the level of security is highly important as it will cause trust issues amongst customers. The customers should be given confidence that there amounts and assets and safe with banks. This surety about the security of assets is highly important because this will encourage them to use online banking systems more. It is witnessed that the major reason because of which customers are not willing to take part in online transactions is due to their past experiences. It is witnessed that the past experiences of customer are also a major factor which causes issues in the adoption of online banking. In the past years, it is also the issue that the customers have gone through instances where they were attacked by cybercrime issues, and this created an impact over their trust. It is evaluated that past experience related to privacy and security breach of customer or even in society is having a great impact over the society [6]
The use of online banking also seems riskier to people, and they believe that it is going that t is going to cause them privacy issues. The level of risk is an essential factor that needs to be addressed, but the primary problem in this regard is that each customer’s perceived level of risk is different from each other. Although risk and customer trust are interrelated to each other, the banks find it challenging to analyze the risk attitude of each customer. The studies suggested that it is highly essential that risk levels of customers should b assessed by banks even if their perceived risk levels are different from each other. The customers will be worried about the security of their assets and the privacy of their personal information. These factors should be assessed timely to reduce the perception of the customer while making transactions [7].
Male and female perception of security
There is a difference of opinion amongst the male and female individuals living in a society regarding the issues and risks related to online banking. The analysis of both the participants is conducted using a survey, and the questions in the study were basic. They were related to the issues of security and privacy of customers and were focusing on understanding how the customer perceives the risk related to online banking. The survey was based on gender, and ten male and 10 female participants took part in it. The questions and graphs of the survey as given below:
Question 1
The question was based on the gender of participants, and there were ten male and ten female participants involved in the survey
Question 2
The question was related to the comfort level of the consumer regarding the consumption of online services from the bank. The survey conducted established that 70% of male participants and 30% of female participants feel comfortable by using online banking
Question 3
The question was based on finding the preference of people making online transactions. In the survey, it was witnessed that 78% of males prefer to use online banking, whereas only 22% of females are interested in this. This indicated that the males prefer online banking more as compared to females
Question 4
The question was based on identifying the level of satisfaction amongst consumers of online banking. It is witnessed that 81% of male participants are satisfied whereas 19% of female customers are satisfied by the processes related to online banking
Question 5
The question was based on identifying how the consumers think about the ease of using online banking systems. It was witnessed that 95% of male participants find it easy to use online banking whereas only 5% of a female can think that it is easy to use
Level of awareness amongst customers with respect to privacy standards used in banks
It is important to understand that for banks, it is highly important that they should make their customers aware of the policies and procedures which they are using in respect of providing security to the customers. The level of awareness should be maximized in this regard as this is the only way through which the trust of customers can be achieved. It is the responsibility of management that they should focus on keeping their customers aware of risk mitigation strategies which they are using for protecting their consumers from cyberattacks [8]. The major focus in this regard is related to analyzing the context of having policies in place, and the banks should publish their security policies to gain customer confidence. By making customers aware of the policies used for bringing change in the banking sector is the way through which customer confidence can be gained. This is the way through which efficiency can also be achieved. The customers will feel protected when the banks disclose that they are having skilled people working in Its department fr safeguarding he private information and assets of the customers. This is the way through which the customers will start trusting the banks and also will use online banking more [9]
Conclusion
From all the above discussion, it is concluded that online banking is a new phenomenon that is impacting the online banking system globally. It is witnessed that the use of online banking is becoming popular, but there are issues related to trust, which is making it difficult for the banks to making progress n respect of online banking practices. It is witnessed that the perception of customers regarding online banking varies. The survey was conducted to learn about the views of male and female consumers, and it was witnessed that the opinions amongst gender were totally different. The level of satisfaction amongst the male and female participants was different from each other. It was concluded that the male participants were more satisfied with the use of online banking, and they were also of the opinion that it is easy to use. The male participants also prefer more to use online banking as compared to female participants, and they believed that they are more comfortable using the online banking approach. It is concluded that for winning the trust of customers, it is becoming highly important that the banks should make them aware of the privacy and security policies that they are using in their banks. The gaining of customers’ trust is the only way through which online banking can achieve success. It is also concluded that the presence of skilled It professionals team is highly important not only to achieve success but also to keep the risk related to cyber attacks at a minimum level. It is witnessed that the major focus of cyber attacks I over getting the personal information of customers, and it is the duty of banks that they should provide safe and effective policies that would help in bringing positivity in the operations which they have performed. Lastly, it concluded that the only major factor is trust which is important for the customer and the banks should assure that they are taking all reasonable steps to mitigate the risk related to this factor
Appendix A
Survey questionnaire
Name:
Question 1 – What is your gender?
- Male
- Female
Question 2 – Do you feel comfortable while using online banking?
- Yes
- No
Question 3: Do you prefer to use online banking as compared to the traditional banking system?
- Yes
- No
Question 4: Do you feel satisfied while using an online banking system?
- Yes
- No
Question 5: Do you think that the online banking system is easy to use?
- Yes
- No
References
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[7]I. Kang, K. Lee, S. Kim and J. Lee, “The effect of trust transference in multi-banking channels; offline, online and mobile”, International Journal of Mobile Communications, vol. 9, no. 2, p. 103, 2011. Available: 10.1504/ijmc.2011.040141.
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